Nick Scali Limited (ASX: $NCK) Share Purchase Plan Overview

Nick Scali Limited (NCK:ASX) has announced the opening of a non-underwritten share purchase plan (SPP) aiming to raise up to A$10 million. The SPP follows the company's successful completion of a A$46 million fully underwritten institutional placement to eligible institutional investors. Additionally, Nick Scali is conducting a A$4.0m conditional placement to Anthony Scali, CEO and Managing Director of Nick Scali, subject to Nick Scali shareholder approval being sought at the Company's AGM expected to be in October 2024.

Executive Commentary on Share Purchase Plan

The SPP is targeting to raise up to A$10 million and is not underwritten. The Company may decide to accept applications that result in the SPP raising more or less than this amount in its absolute discretion. The proceeds of the Placement and Conditional Placement will be used to fund the proposed acquisition of 100% of the shares in Anglia Home Furnishings Limited t/a Fabb Furniture (AHFL), an early exit of AHFL's existing distribution centre arrangements, an additional investment of up to $27.2 million to fund the Company's United Kingdom growth strategy, including store refurbishments, re-branding, marketing and general corporate purposes, a net working capital injection, and transaction costs associated with the Placement.

Summary of Share Purchase Plan and Outlook

Nick Scali Limited (NCK:ASX) has opened a non-underwritten share purchase plan (SPP) targeting to raise up to A$10 million. The SPP is part of the company's strategy following the successful completion of a A$46 million fully underwritten institutional placement. The proceeds from the SPP will be used to fund the proposed acquisition of Anglia Home Furnishings Limited t/a Fabb Furniture (AHFL), early exit of AHFL's existing distribution centre arrangements, investment in the Company's United Kingdom growth strategy, net working capital injection, and transaction costs associated with the Placement. The SPP is voluntary and open to eligible shareholders, offering the opportunity to subscribe for up to A$30,000 worth of new shares without incurring brokerage or transaction costs. The SPP Shares will be priced at $13.25 and will rank equally with existing Nick Scali shares from their date of issue. Eligible shareholders are encouraged to carefully read the SPP booklet and seek professional advice if in doubt about whether to accept the SPP offer. The SPP is indicative only and subject to change, and further details about the SPP can be found in the investor presentation released to ASX on Wednesday, 24 April 2024.